At your request I am going to venture into an area where I don't feel comfortable.
It seems to me that the arrival of the Chinese and the maintenance of the JV had already been considered by the market as a fait accompli prior to the recent announcement and therefore that the resent price spike was caused by traders trying to make a quick buck on the basis of the announcement without giving much thought to it. They pushed the price up and then down.
If you are for the long term then you must understand that unless the bet on gold ends up by given a significant return, Haw's holders will have to be prepared to stomach a long dry period with successive calls for capital injections as project finance for Mt. Bevan cannot be expected to become an alternative choice until the project has been significantly derisked. Therefore people willing to move into HAW and to do so not on the basis of expectations about another takeover offer from LCY down the line may be inclined only to do so at a discount.
LCY Price at posting:
6.8¢ Sentiment: Hold Disclosure: Held
